India: Poverty Retreats with Globalization’s Advance

By: Baldev Raj Nayar
Published in: Yale Global, 1 February 2007

This article is about India, and globalization saved the country from crisis. Basically, in 1991 India was mired in an enormous financial crisis because it had only very slowly been liberalizing its economy since the country’s independence in 1975. The changes weren’t happening fast enough until the onset of globalization. Globalization sparked a new era of economic dynamism in India. Change came fast and furious and growth has been through the roof in India ever since. This dynamism has transformed India from its nickname “the sick man of Asia,( as an annual receiver of a enormous amount of foreign aid) into a credible contender for a major role in the balance of power in Asia.”

This article is important because it discusses how India can be a model for the globalizing world. It also shows how some of the anti-globalizationist’s fears have failed to materialize in India some ten year after it began to really affect the country.